Seven state reps voted for bailout rescue package’

By Bronislaus B. Kush TELEGRAM & GAZETTE STAFF

Tuesday

Sep 30, 2008 at 12:30 AM

U.S. Rep. James P. McGovern fielded a telephone call yesterday morning from a constituent who strongly urged the Worcester Democrat to vote against the $700 billion plan aimed at shoring up the nation’s ailing financial institutions.

“Frankly, I couldn’t disagree with his concerns,” said Mr. McGovern, shortly after the U.S. House of Representatives voted against what would have been the largest federal intervention into private markets in American history. “Most people in the district are against the bill. But at the end of the day, I had no choice but to vote for it. There was too much at stake.”

Like many other Democrats, Mr. McGovern said he believed there were enough guarantees written into the bill by Rep. Barney Frank, D-Newton, chairman of the House Financial Services Committee, to make it palatable.

Bill supporters said there was no alternative bailout plan available and had argued that passage was necessary to avoid a collapse of the economic system.

Much of the opposition came from conservatives concerned about a massive infusion of money by the federal government into a sector of the economy they said should be controlled by market forces. Others were worried that taxpayers would be saddled with paying the bill.

Congress will not convene today because of Rosh Hashanah, the Jewish new year.

But Mr. McGovern said he expected both the Republican and Democratic leadership to spend the day trying to convince bill opponents to reconsider their vote.

Mr. McGovern said the House may take another look at the bill as soon as Thursday. Meanwhile, the Senate was scheduled to debate the issue tomorrow.

U.S. Rep. Richard E. Neal, D-Springfield, said he voted in favor of the “rescue package” because it included tough independent oversight and transparency. He also said it limited excessive compensation for financial executives and contained strong taxpayer protections, as well as elements to prevent home foreclosures.

“It is clear our country is experiencing an economic crisis and I believed that decisive action was necessary to protect and preserve our troubled financial institutions,” Mr. Neal said. “And it was equally important to protect the investments of our nation’s citizens.”

Mr. Neal said the failure of the House to approve the bipartisan effort will continue to fuel “economic uncertainty.”

Mr. McGovern said the federal government will have to do something soon before lending institutions freeze credit, making it impossible for ordinary Americans to get mortgages and loans for cars, college and other expenses.

He said companies are already having difficulty meeting payroll and conducting business as a result of the credit crunch.

“I don’t really care about the fat cats on Wall Street,” Mr. McGovern said. “Instead of being billionaires, they’ll be millionaires. They’ll survive this. I’m worried about the families that have been having a very difficult time making ends meet, ever since George Bush was elected president.”

Mr. McGovern said Mr. Frank and his committee colleagues did a good job reworking the bill submitted by the president last week.

“The bill was originally three pages long and offered a bailout to Wall Street with no strings attached,” Mr. McGovern said. “Now it’s 100 pages long and offers protection to the taxpayer.”

He said passage of the legislation is only the first step in stabilizing the economy; adding an economic stimulus package and more oversight and regulation of the industry are needed.

Three congressmen from Massachusetts voted against the bailout: Stephen F. Lynch, D-Boston, William D. Delahunt, D-Quincy, and John F. Tierney, D-Salem.

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